Prosecutors and protection attorneys within the prison case of former FTX CEO Sam Bankman-Fried, also referred to as SBF, painted a really totally different image for the jury to think about throughout the trial.
In a New York courtroom on Oct. 4, Assistant United States Lawyer Thane Rehn and SBF’s legal professional Mark Cohen delivered opening arguments to a jury of 12 folks on the occasions main as much as the collapse of crypto alternate FTX in addition to Bankman-Fried’s alleged function. The remarks adopted Choose Lewis Kaplan finalizing a number of 12 members of the jury and 6 alternates after greater than a day of questioning roughly 50 folks.
In response to an X (previously Twitter) thread from Interior Metropolis Press on the occasion, Rehn claimed in courtroom that SBF used FTX buyer funds to counterpoint himself in addition to persuade lawmakers — by way of marketing campaign donations and testimony — that he was reliable. The assistant U.S. legal professional reportedly argued that Bankman-Fried repeatedly lied to customers, workers, lawmakers and most people concerning “the opening” FTX discovered itself in throughout November 2022 when monetary info on the alternate was launched.
“The outlet was too massive,” mentioned Rehn. “So the defendant blamed a downturn within the crypto market. However he had dedicated fraud. That’s what the proof on this trial will present. You’ll hear from his inside circle. His girlfriend will inform you how they stole cash collectively.”
Cointelegraph reporter Ana Paula Pereira can also be in attendance and can give day by day updates on probably the most vital developments all through the trial. pic.twitter.com/mNu588v2fB
— Cointelegraph (@Cointelegraph) October 4, 2023
Cohen, who delivered his opening assertion after Rehn, reportedly blamed among the points resulting in FTX’s downfall on SBF’s former girlfriend and former Alameda Analysis CEO Caroline Ellison in addition to Binance CEO Changpeng Zhao, or CZ. He claimed Ellison had did not act to hedge a few of Alameda’s investments regardless of Bankman-Fried’s urging to take action and that CZ’s social media posts had straight led to a run on FTX.
SBF’s protection crew introduced the previous FTX CEO as somebody who “acted in good religion” amid an organization rising exponentially in a unstable crypto market. He additionally pushed again in opposition to the narrative SBF was a “dangerous man” by spending funds, with a penthouse within the Bahamas and paying celebrities to endorse FTX, saying: “It’s not a criminal offense to attempt to get Tom Brady.”
“Alameda took massive margin loans from FTX,” mentioned Cohen, based on studies. “Nothing flawed with that. Alameda was a market maker. Nothing flawed with that. FTX at first didn’t have a checking account to just accept {dollars}, which within the crypto world are referred to as fiat. So, they used an Alameda account.”
Associated: 5 highlights of Sam Bankman-Fried’s first day of trial
Oct. 4 marked the second day of Bankman-Fried’s first prison trial, which is anticipated to final roughly six weeks. He has pleaded not responsible to seven expenses associated to alleged fraud at FTX and can seem in courtroom once more in March 2024 for a second trial.
Among the many highlights of SBF’s first week in courtroom included the previous FTX CEO showing with a brand new haircut for the primary time. Ellison, together with different former executives linked to the crypto alternate, might testify in opposition to SBF because the trial continues.
Journal: Are you able to belief crypto exchanges after the collapse of FTX?
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